26 Apr Arctic Green Energy completes USD 150 million equity and debt funding
China Everbright and CITIC Capital become shareholders
Arctic Green Energy has completed new funding with its long-time partner CITIC Capital (via the CITIC Kazyna Investment Fund) and welcomes China Everbright as a new shareholder. The funding from this round will be used to finance the company‘s growth strategy as well as to refinance existing debt.
- An early investor since May 2015, CITIC Capital has exercised its conversion rights to acquire direct equity of USD 30 million in Arctic Green Energy;
- China Everbright Limited has purchased shares and an exchangeable bond issued by Arctic Green Energy for a total of USD 70 million;
- The above funding is in addition to the recently announced USD 50 million loan facility provided by the Asian Development Bank, which has now been completed.
Arctic Green Energy‘s strategy is to create zero emission cities through renewable resources, technology and infrastructure. Currently, most of its projects are based on geothermal as the primary energy source. Cities consume over 70% of all energy generated globally. A large portion comes from burning fossil fuels for heating and cooling causing fast escalating air pollution and deteriorating public health. Geothermal is a baseload, profitable renewable energy and the best response to air pollution and emissions while providing people with a clean, renewable and less expensive option than coal heating.
Mr Haukur Harðarson, chairman and founder of Arctic Green Energy, will remain the company‘s majority shareholder, with CITIC Capital and China Everbright holding significant minority stakes.
“The completion of this USD 150 million financing round is a significant step for Arctic Green Energy. Firstly, we have elevated our financial strength to support the continued growth of the company. Secondly, we are refinancing existing funding structure at improved terms and thirdly, but most importantly, we are welcoming two new shareholders that bring a significant strategic value to the firm. CITIC Capital has been an investor in Arctic Green Energy since 2015 and we highly value the relationship and trust built with them during the past three years. Furthermore, we welcome China Everbright to broaden the investor group to strengthen its ties with China, and build on this success in other markets. CITIC Capital and China Everbright are two global investment firms with strong roots in Asia that have special focus on clean energy and will now take part in our mission to create zero emission cities with clean, profitable renewables.“ says Mr. Haukur Harðarson, chairman of Arctic Green Energy.
“We have been working with Arctic Green Energy for three years now, and this milestone in the company‘s development confirms all of the accomplishments it has achieved so far in implementing geothermal technology in China and abroad.“ says Mr. Fanglu Wang, Senior Managing Partner for CITIC Capital.
“As the global leader in geothermal technology, Arctic Green Energy has not only established dominating market share in the market, but also successfully introduced world-class technology and management expertise into China. We are very pleased to provide capital and support to outstanding business like AGE. The capital will unlock AGE’s growth while contributing to China’s clean energy development. We look forward to our continued partnership and to further enhance AGE’s development in China.” Mr. Henry Tao, Head of Capital Investment & Financing, China Everbright Limited.
About Arctic Green Energy (www.arcticgreencorp.com)
Arctic Green Energy is a renewable energy company focusing on creating zero-emission cities. Together with Sinopec, Arctic Green has a joint venture in China, Sinopec Green Energy (“SGE”). SGE now operates in more than 40 cities and counties in China and has a heating capacity of over 40 million square meters. It is today the world’s largest geothermal district heating company and is actively expanding into other renewables through co-generation with geothermal. The joint venture has demonstrated how effectively geothermal energy can replace coal heating in China. Cities consume over 70% of all energy generated globally. A large portion comes from burning fossil fuels for heating and cooling causing fast escalating air pollution and deteriorating public health. Geothermal is a baseload, profitable renewable energy and the best response to air pollution and emissions while providing people with a clean, renewable and less expensive option than coal heating.
About CITIC Capital (www.citiccapital.com)
Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD 22 billion of capital across 100 funds and investment products through its multiple asset class platform covering private equity, real estate, structured investment & finance, and asset management. CITIC Capital has over 130 portfolio companies that span 11 sectors and employ over 820,000 people around the world.
About China Everbright Limited (www.everbright.com)
China Everbright Limited (“CEL”) is China Everbright Group’s largest cross-border asset-management and investment platform. By the end of 2017, the asset scale of the 48 domestic and overseas funds managed by CEL exceeded HKD 129.1 billion. Through its managed funds and principals, CEL has invested in more than 300 companies in China and around the world respectively. Its investments include real estate, healthcare, new energy, infrastructure, high-tech, high-end manufacturing, fintech, cultural consumption and many other industries. Among them, more than 150 companies have already exited through listings or mergers and acquisitions in China and overseas markets, with outstanding investment performance.